AN Addingham businessman is warning other traders in the area about a Data Protection Act scam which nearly cost him £95.

Peter Hadfield was almost shocked into paying up when he received what looked like an official demand for money from the Government.

The official looking letter, carrying logos showing the scales of justice, and displaying the words 'Final Notice' in capital letters demanded almost £100 to register his business, Hadfields Photocraft, of Main Street, Addingham, under the Data Protection Act 1998.

It informed Mr Hadfield that he had not registered his business and that failure to register was a criminal offence which could lead to a fine of £5,000.

Mr Hadfield said: "It looks like an official form and says the Data Protection Agency. It says final notice, your business has still not submitted notification. Failure is a criminal offence with a fine up to five thousand pounds.

You think: "What have I done? There is a form to register and send it off to an address in Crewe. I filled it all in thinking I did not want to get into trouble."

But before he sent of the cash, Mr Hadfield had second thoughts about whether the letter was genuine or not.

"I rang the Data Protection Registrar and they said throw the letter in the bin because I did not need to register," said Mr Hadfield.

He was told that the business calling itself the Data Protection Agency was nothing to do with the Data Protection Registrar. It was an agency which would have registered his business - for a fee of £35 - and pocketed the remaining £60.

Mr Hadfield said he was also told that his business was exempt from registering and there was no need to spend any money to comply with the act.

He was angry that someone had attempted to fleece money from him by appearing to threaten court action.

Mr Hadfield said: "It is shock tactics and other businesses in the area need warning against it. They must be getting away with it but it strikes me as a bit wrong."

He said: "It put the wind up me to be honest but I think I must have read something in the past that rang a bell."

A spokesman for the Data Registration Commissioner said: "The Commissioner is keen to make clear that there is no connection between his Office and these businesses.

He has been disturbed that a number of people have been confused and troubled by the wording and tone of some of the correspondence issued by these businesses and his office is co-operating with other relevant authorities, who are exploring what action might be taken."

Speaking from his Office in Wilmslow, Cheshire, The Commissioner said: "I advise data controllers to ignore any approach made by these businesses, who appear to be charging up to £95 plus VAT for notification.

"Other than paying the annual statutory notification fee of £35, on which no VAT is payable, there is no charge made by this office.

"Organisations who wish to complain about correspondence received from these businesses, should contact their local Trading Standards Office."

Martin Wood Chief Officer of West Yorkshire Trading Standards said: "Businesses must be vigilant. It is so easy for these to be paid by mistake, given that the letters are so cleverly worded.

The fact that these businesses keep springing up again suggests it is still a lucrative market and people are still paying up. Do not be intimidated by these letters and if your business receives one, report it to the West Yorkshire Consumer Helpline on 01133 848 848."

Several companies such as the Data Protection Agency and the Data Protection Registration Agency have taken the opportunity to try to profit from recent changes to Data Protection legislation.

The letters are misleading because they give the impression they come from the Information Commissioner and that the business receiving them is under a legal obligation to register with the company immediately.

Some businesses processing personal data are required by law to register with the Information Commissioner. However, some small businesses that process personal data for limited purposes may not need to register and the Information Commissioner does not send out threatening letters demanding payment.

Trading Standards is warning companies not to respond to such letters and if concerned about whether registration is necessary to make inquiries directly with the Information Commissioner's office based in Wilmslow, Cheshire by telephoning 01625 545 745.

The Office of Fair Trading has already taken action to stop several businesses operating in this way, but as soon as this happens other businesses emerge to take their place.